Swapping ERC-20 tokens is the main concept in DeFi. This is the key functionality Tethys offers. Powered by the best-in-class layer 2 solution, you can experience fast, secure, reliable, cheap transactions via the user-friendly Tethys UI.
Tethys charges a 0.2% fee (lower by 30% than other Uniswap protocol-powered exchanges), 0.17% goes to liquidity providers while the other 0.03% goes to xTETHYS stakers.
The exchange performs smart routing, which means it searches for the most profitable trade route for you. For example, you can trade METIS-TETHYS directly with the ratio of the METIS-TETHYS liquidity pair, or you can do a complicated route, let's say METIS-USDC-TETHYS. In this case, the price will be determined by the METIS-USDC and USDC-TETHYS liquidity pools.
But you don't have to worry about this as the exchange performs all the necessary checks for you to get the most sweet price, resulting in the most profitable output on its end.
2) Select the input token (you want to pay) and the output token (you want to get in exchange)
3) Enter the amount in the input or output field
4) Click the "Swap" button and confirm transaction
If the amount of tokens in liquidity is small compared to the trade amount, prices will move by a large percentage. This cuts the output, resulting in a loss. Defining slippage tolerance is required, so a trader doesn't lose more than he's willing to.
The recommended slippage tolerance is 0.5%, but it may not be sufficient when you trade deflationary tokens.